Should I file taxes on the sale of an inherited house if I sold it as a loss?

Yes.  Report the sale, it may not be a taxable transaction but you should report the sale.

follow these instructions. and at the bottom it talks about Inherited home.

These are entered in the investment section of TurboTax. Follow these instructions:

1. Open or continue your return in TurboTax.
2. In the search box, search for sold second home and select the Jump to link in the search results.
3. Answer Yes on the Did you sell any stocks, mutual funds, bonds, or other investments in 2020? screen.
   • If you land on the Here's the info we have for these investment sales screen, select Add More Sales.
4. On the OK, what type of investments did you sell? screen, select Other then Continue.
5. On the Tell us more about this sale screen, enter the name of the person or institution that brokered the sale.
6. On the next screen, select Second Home (choose this also for inherited homes) or Land and answer the questions to finish entering your sale.

You won't pay taxes on the first $250,000 (also known as a gain) you make from the sale of your home. If you're Married Filing Jointly, you won't pay taxes on the first $500,000.

That income is free and clear as long as:

• You owned the home.
• It was your main home for two years or more within the five years leading up to the sale.
• You waited at least two years between selling your primary home and excluding your first $250,000 or $500,000 from taxes. In other words, you may buy and sell as many primary homes as you'd like, but you'll only get this tax benefit every two years.